The first week of the second quarter saw four initial public offerings (IPOs) raise more than $1.1 billion in five new offerings. With six IPOs on the coming week’s calendar, the total capital raise could top $750 million, or around $1.1 billion counting the planned IPO of a blank-check company.
Last week’s largest IPO was trucking company Schneider National Inc. (NYSE: SNDR), raising $550 million, as expected, but receiving no first-day pop.
Hess Midstream Partners LP (NYSE: HESM) raised $340 million after pricing at above the expected range and getting a further first-day boost of 11%.
Enterprise software firm Okta Inc. (NASDAQ: OKTA) raised $187 million after pricing at the top of an increased range. The shares popped 38% on the first day of trading.
Sub-prime online lender Elevate Credit Inc. (NYSE: ELVT) raised $81 million after lowering its price to $6.50 and increasing the shares on offer from 7.7 million to 12.4 million. Shares popped 19% on the first day of trading and closed the week up 14%.
Blank-check company Forum Merger Corp. (NASDAQ: FMCIU) also completed its offering of 12.5 million units at $10 per unit.
Brazilian airline Azul SA failed to complete an IPO last week after being forced to suspend its offering for 30 days to comply with an order from a Brazilian regulator.
Through the week ending April 7, IPO ETF manager Renaissance Capital reported that 29 IPOs have priced in the U.S. so far this year, up about 222% year over year. Total proceeds raised through last week equaled $11 billion. For 2016, Renaissance Capital reported a total of 105 IPOs, down 38% year over year from 170 in 2015. Total 2016 proceeds amounted to $18.8 billion compared with a 2015 total of $30 billion. Renaissance Capital does not include “best efforts” or blank-check companies in its totals, nor does it include IPOs that raise less than $10 million.
First up in the coming week’s IPO parade is a blank-check company, Vantage Energy Acquisition Corp., which plans to offer 40 million units at $10 per unit. The company expects to begin trading Tuesday on the Nasdaq under the ticker symbol VEACU.
Netshoes (Cayman) Ltd. is an online seller of sports and lifestyle products in Latin America. The company plans to offer 8.3 million shares in an expected price range of $18 to $20 to raise $157 million at an implied market cap of $588 million. Underwriters for the offering are Goldman Sachs, J.P. Morgan, Bradesco BBI, Allen & Co., and Jefferies. Shares are expected to price Tuesday and begin trading Wednesday on the New York Stock Exchange under the ticker symbol NETS.
Cadence Bancorporation is a commercial relationship bank offering services to businesses, high net worth individuals, and retail customers. The company plans to offer 7.5 million shares in an expected price range of $19 to $21 to raise $150 million at an implied market cap of $1.65 billion. Underwriters for the offering include Goldman Sachs, J.P. Morgan, Sandler O’Neill, Keefe Bruyette Woods, Baird, Raymond James, Stephens Inc., SunTrust Robinson Humphrey, and Tudor, Pickering, Holt & Co. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol CADE.
Tocagen Inc. is a clinical-stage, cancer-selective gene therapy company. The company plans to offer 7.3 million shares in an expected price range of $10 to $12 to raise $80 million at an implied market cap of $187 million. Underwriters are Leerink Partners, Evercore ISI, and Stifel. Shares are expected to price Wednesday and begin trading Thursday on the Nasdaq under the ticker symbol TOCA.
Warrior Met Coal LLC is a producer and exporter of premium metallurgical coal used in making steel. The company was formed in September 2015 when certain lenders acquired assets from Walter Energy during a bankruptcy proceeding. The company plans to offer 16.7 million shares in an expected price range of $17 to $19, raising $300 million at at implied market cap of $963 million. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol HCC.
Yext Inc. offers a cloud-based platform that allows businesses to manage publicly accessible structured information. The company plans to offer 10.5 million shares in an expected price range of $8 to $10 to raise $95 million at an implied market cap of $905 million. Underwriters include Morgan Stanley, J.P. Morgan, RBC Capital Markets, Pacific Crest, and Piper Jaffray. Shares are expected to price Wednesday and begin trading Thursday on the New York Stock Exchange under the ticker symbol YEXT.
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